Tesla will cut thousands of employees from its Gigafactory Texas as part of a companywide tightening effort.
According to a Worker Adjustment and Retraining Notification from the electric vehicle giant, the Texas facility in Austin will lose 2,688 workers starting in June.
The news comes after Tesla CEO Elon Musk announced last week that the company will cut 10% of its global workforce.
Tesla had 140,000 employees as of 2023.
“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Mr. Must wrote in a memo to staff.
Tesla’s economic worries have intensified since the start of the year as demand for EVs slowed and sales dried up. This month, the company reported its first dip in year-over-year sales and the company lost its title as the world’s top-selling EV maker to Chinese automaker BYD.